The world thought the U.S. fiscal cliff deadline was December 31, but "the fiscal cliff is (still) coming", says Howard Lutnick, CEO of global financial services firm Cantor Fitzgerald.

"You're going to watch the U.S. do crazy, crazy things this year," Lutnick told CNN's Richard Quest at the World Economic Forum in Davos, Switzerland. "The Republican Party that was elected to control Congress... (is) going to cross their arms and they are not going to raise the debt ceiling ultimately unless they get severe spending cuts, and the Obama administration is not going to give it to them."

If Congress fails to act, the U.S. and the world economy will have a "dreadful" 2013, Lutnick said.

Despite Lutnick's concerns, on January 23 the Republican-controlled House of Representatives did pass a bill that would allow the U.S. Treasury to borrow new money through mid-May. President Barack Obama has said he would not oppose the proposal if it reaches his desk, although he prefers a long-term debt ceiling increase.

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All smiles – Marissa Mayer, CEO of Yahoo!, is all smiles during her session at the World Economic Forum.

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Entering the stage – German Chancellor Angela Merkel arrives for her session on January 24, 2013.

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Behind the scenes – CNN's Richard Quest ran into London Mayor Boris Johnson on the streets of Davos.

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Police precense – Policemen stand guard on the roof of the congress center in Davos.

More than a pretty picture – The Swiss resort of Davos first hosted the World Economic Forum back in 1971 when a group of European business leaders met under the partronage of the European Commission and European industrial associations.

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EXPAND GALLERY

Lutnick adds that to avoid a repeat of the 2008 financial crisis, regulators need to actually address issues that caused it.

"What caused the credit crisis was just dumb lending. When you lend money to people who can't pay you back, you go broke."

Looking ahead to 2013, Lutnick says the biggest risk to global growth is the U.S. hitting the debt ceiling -- whether in the short- or long-term.

"Off the fiscal cliff we go. We (the U.S.) are irrational and we are silly... we are dopey."

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